With all the talk of Uber recently, you might have considered signing up to drive for the service in order to earn some extra money. You might also wonder about the implications when it comes to your car insurance and who would pay in the event of an accident. Read on to learn all about what steps you may have to take to ensure you don’t run into any insurance surprises.
What is Uber?
Uber is a ride-hailing service (sometimes referred to as “ride-sharing”) that competes with taxis and black car services. Passengers hail an Uber from the smartphone app and arrange for a car to pick them up, often for less than the cost of a traditional taxi.While Uber has a number of commercially-licensed black car services, it also has a product called UberX. UberX allows local drivers to respond to notifications on the Uber app by driving customers in their own (non-luxury) cars.
From a business perspective, Uber is similar to taxi companies in that they do not own or operate the cars, and drivers are not directly employed by them. However, unlike traditional taxi medallion companies, almost anyone can drive for UberX and competitors like Lyft, Sidecar, etc. In some states the only requirements for UberX drivers are car insurance, appropriate age, health, completion of a driving test, and passing a background check.
Driving For UberX Could Invalidate Your Personal Auto Insurance Policy
Your personal auto insurance policy may not provide coverage for you if you drive for a service like UberX. This is because personal car insurance policies have a list of exclusions, and they often include “driving-for-hire.” If you are driving for UberX or a similar service, you should check with your insurance company to confirm whether your policy covers this “commercial driving.” If it does not, you will want to consider purchasing supplemental commercial auto insurance, though for many part-time drivers, this may not be financially feasible.
Uber Provides (Some) Auto Insurance Coverage… When The App Is On
Uber requires all of their drivers to have car insurance, and provides supplemental insurance coverage, but only while the app is on. Here’s how it works: When the Uber app is off, a driver is covered by their own personal car insurance. When the Uber app is turned on, a low level of liability insurance becomes active. When a trip is accepted, a higher level of coverage kicks in and remains active until the passenger exits the vehicle. Previously Uber had only offered coverage when a passenger was in the car, but the company updated their policy after a series of accidents which resulted in various lawsuits.
Lyft and some of the other ride-sharing services point to the $1 million per incident excess liability coverage that certain states require them to carry. The policies are designed to deal with liability claims, which a driver’s insurance doesn’t cover. But these policies won’t cover a driver’s car – you must rely on your own personal auto insurance policy.
UberX Drivers May Also Need A Commercial Driver’s License
If you drive for UberX or a similar service, whenever you pick up a passenger you are driving professionally. Even though you are an independent contractor, some states will consider you to be a commercial driver. While each state’s laws are different, UberX and Lyft drivers should be aware that your state may require you to have a commercial driver’s license. (Note: Some states only require drivers to have a commercial license if they drive as a full-time occupation.) Check with your state’s DMV for their requirements.
If your state requires you to have a commercial driver’s license when driving for Uber, you could be subject to prosecution if you get into an accident and don’t have a commercial license, even if you have a commercial auto insurance policy. Things may soon get less complicated though. Several insurance companies have recently created unique auto policies that are tailored specifically to drivers of Uber, Lyft, etc. These insurance plans are currently only available in select states, but provide an alternative to a traditional commercial auto insurance policy.
In the end, if you’re looking to start driving for Uber, your best bet is to be upfront with your insurance company about the fact that you’ll be “driving-for-hire”, find out if you need commercial insurance, and find out if you need a commercial driver’s license.
In the meantime, give us a call at (800) 258-5101 to find the auto insurance policy that best fits your driving needs. And you can always get an insurance quote at AnswerFinancial.com.
- All About Car Accidents
- Boston Globe.com
Here’s How UberEATS Works
- Step 1 – A customer scrolls through the UberEATS app for the restaurant of his or her choice and makes a food selection.
- Step 2 – The app shows the customer the order cost, with the price of the food, tax, and booking fee, as well as the UberEATS driver pay.
- Step 3 – The order is transferred to the restaurant and they start to prepare the food.
- Step 4 – When the food’s nearly ready, the app notifies a local UberEATS delivery driver, who picks it up.
- Step 5 – The customer gives the address to the UberEATS driver for either curbside or door delivery.
- Step 6 – The Uber delivery driver makes the drive to the appropriate destination, with GPS guidance if needed.
- Step 7 – Once the food’s dropped off, the Uber delivery driver is credited instantly through the app.
- Step 8 – We eat!
UberEATS Driver App
The heart of your delivery workplace is the UberEATS driver app. Once you register, are accepted, and given an account number, you will install the UberEATS driver app on your phone.
To begin your work as an UberEATS driver for the day, you tap the UberEATS driver app and select whether you are willing to carry passengers, food, or both. A job pops up with the address of the restaurant, the name of the customer, and the order items. You, the Uber delivery driver, are given a time to pick the order up. The GPS on the UberEATS driver app guides you to the restaurant.
If the food is ready, you can show the order on the UberEATS driver app to the cashier. He or she gives you the food, and you’re off to the customer. Should the food not be ready on time, you then have the option to wait or cancel. The decision will usually depend on the wait time and how busy you are.
A thoughtful UberEATS driver will text the customer and give them an estimated time of arrival. The app will note whether you will be met at the curb or will need to park and go to the client’s door. Once there you have the customer you give the order to confirm delivery on the app. As you drive away, the UberEATS driver app registers the amount of UberEATS driver pay for the delivery. And then, you’re on your way to pick up another delivery as an Uber delivery driver!
Top Tips For UberEATS Drivers
Thought you were done? We’re almost there, but we have some tips for new UberEATS drivers that will save you time, earn you more, and maybe a little head banging.
- First, it’s all about customer service. Treat your customers well, and chances are they’ll be more than generous with the tips. For example, smile when you make the delivery, make small talk if you can – ask them about their days or talk about the weather. You can even compliment them on something like their gardens or their outfits.
- Second, ensure you deliver the right orders to the right customers. This is especially important if you are making multiple deliveries.
- Go above and beyond by picking up as many extra condiments from the restaurant as they allow (ketchup packets, soy sauce packets, salt and pepper packets, Parmesan packets, plastic cutlery, napkins, taco sauces, breath mints, or anything similar that you can take for free – GET IT.)
And don’t forget to subtly hint to them that you thought they might need the extras.
- Handle all orders carefully. Carry them in insulation bags and secure them in an upright position. The last thing you want is a spilled order.
- Maintain an excellent rating on the platform in all aspects. From a high order acceptance rate to a low cancellation late. This will enable you to qualify for more incentives, bonuses, and promos.
- Don’t forget parking! This one can be a nightmare. Beware of any parking meters, don’t double park and carry some change in case you need to pay for parking space. The last thing you want is to be dinged with a parking ticket on your errand.
- Keep your phone charged and with you at all times. Better yet, bring along a portable charger to ensure you are on especially when making multiple trips.
- Although Uber is changing the policy on the tipping on UberEATS drivers, it might make sense to bring some change in case the customer wants to tip you in cash. Veteran drivers recommend at least 20 bucks in change.
- Finally, take advantage of UberEATS driver incentives! Promotions allow drivers to earn extra cash, eg, by completing multiple orders in a specified time frame or making deliveries during particular high demand times. Examples include the Boost Guarantee, Hourly Guarantees, etc.
Still want more tips to enhance your UberEATS driver experience, check out these pro tips from the UberEATS site.
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Uber, one of the best taxi dispatcher, has always been a newsmaker. Sometimes setting a benchmark in the gig economy and sometimes transforming other On- demand services. Sometimes being in the news for treating its drivers as independent contractors or sometimes transforming their taxi services by promoting the idea of driverless cab experience. Uber is everywhere in the news.
Uber is known for its taxi, private car, and ride-share hailing services. Using the company’s app, Uber users hail rides from contract drivers at a variety of price points–often lower than those of traditional taxis.
Recently, Uber managed to be in the spotlight by declaring about how it is going to make its relationship with Uber drivers stronger and better. The reason why Uber is doing so is mainly because it has undergone a major loss in the recent times. This mainly happened because Uber is a new corporation that has grown not because of its quirks and special facilities but also because of the high investment capital taken for it. Uber doesn’t disclose its financial details.
If you are thinking about joining Uber as a driver, then the most important thing you’ll have to consider is how much you could possibly earn. The taxi service that uses crowd-sourced drivers with their own cars is very popular with users but it occasionally gets into trouble with governments as well as taxi associations.
Uber makes public car services in NV efficient and cost-effective for both the driver and the customer. The company use an intelligent mapping system to find you when someone requests a taxi, depending on how close you are to the customer. Uber’s philosophy it to link a driver to their customer in less than five minutes, meaning you’ll never be out of work.
Uber is basically a ride sharing app, which does not own any car of its own. It is a mobile app which links drivers and passengers through a convenient platform. After the signup process, drivers get their own version of the app on their smartphones.
Uber takes the convenience of all the things you can do with a smartphone and applies it to the transportation world. You download the app, enter your information and request that a driver pick you up. The app provides real-time tracking for you, so that you can always know exactly where your driver is. You enter your credit card info as soon as you sign up for the app, so no swiping is involved. Compare this to the frustration of calling a cab and never knowing whether they’ll really be there in the 20 minutes, and it’s easy to see the appeal of Uber.
Riders in Las Vegas Nevada use their phones to book a cab from a location without waiting on the streets for a free taxi. Nearby drivers are notified on their apps about the fare and the location. Next step for the driver is to accept the fare and pick up the passenger.
Working for Uber means you’ll be your own boss, able to work as little or as much as you like, at any time of day. And with inflated Uber fares during particularly busy periods, you’ll get paid extra for working on weekends or public holidays.
Uber is evolving the way the world moves. By seamlessly connecting riders to drivers through their app, they make cities more accessible, opening up more ways to reach places. Learn more on how to become an Uber driver.Uber drivers in Las Vegas NevadaLas Vegas Uber drivers6 out of10 with